Life Insurance & property ownership for cohabiting couples is not so simple, as it can give rise to the tax on the benefit pay-outs, if not set up correctly. The good news is that we can show you how to avoid taxes on both life insurance proceeds and property inheritance.

Below in a summary of the points, and to learn how address your personal situation you can reach us here.

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PROPERTY RIGHTS

Estate

The succession act allows registered civil partners automatic rights to each other’s estates on death. All other cohabiting couples can apply for a provision out of the deceased’s estate but must pay inheritance tax on it.

Arranging the contract on a life of another basis will avoid any potential liability to Inheritance tax, but remember that is this case the policy owner must pay the premium.

Family Protection

As cohabitants have no automatic right s to their deceased’s partner’s assets, unless they have a will in place the proceeds of a life assurance contract could end up in the hands of the deceased’s next of kin if the life policy isn’t structured properly.

Note

The small gift exemption which is currently €3,000 can be used to ensure that the policy owner is paying the premium where the policy owner doesn’t earn an income.